Q1 2026 Canadian Apartment Properties Real Estate Investment Trust Earnings Call

May 8, 2026

Speaker #1: Will be coordinating your call today. During the presentation, you can register a question by pressing star followed by 1 on your telephone keypad. If you change your mind, please press star followed by 2 on your telephone keypad.

Speaker #1: I will now hand over to Nicole Dolan, Investor Relations at Canadian Apartment Property REIT, to begin. Please go ahead.

Speaker #2: Thank you, Operator, and good morning, everyone. Before we begin, let me remind everyone that during our conference call this morning we may include forward-looking statements about expected future events and the financial and operating results of CAPRI, which are subject to certain risks and uncertainties.

Speaker #2: We direct your attention to slide 2 and our other regulatory filings for important information about these statements. I will now turn the call over to Mark Kenny, President and CEO.

Speaker #3: Thanks, Nicole, and good morning, everyone. Joining me this morning is Stephen Co, our Chief Financial Officer. Before we begin, I'd like to take a moment to personally announce my retirement as President and CEO of CAPRI.

Speaker #3: And I am pleased to announce Brad Kettey as my successor, effective July 2nd. I have greatly enjoyed the nearly 30 years I have spent with CAPRI and would like to express my sincere gratitude to everyone, past and present, for their collaboration and partnership.

Speaker #3: Brad brings substantial leadership capability and public company expertise, with 30 years of experience in real estate and capital markets. I am confident that under his leadership, CAPRI to think good hands and well-positioned for the future.

Speaker #3: And with that, it is my pleasure to be here with you today on my final conference call to present one last update on CAPRI's performance.

Speaker #3: Let's begin on slide 4 and walk through some highlights from the year so far. In 2026, we've completed 45 million dollars' worth of asset repositioning in Canada.

Mark Kenney: Sir, effective 2 July. I have greatly enjoyed the nearly 30 years I've spent with CAPREIT and would like to express my sincere gratitude to everyone, past and present, for their collaboration and partnership. Brad brings substantial leadership capability and public company expertise. With 30 years of experience in real estate and capital markets, I am confident that under his leadership, CAPREIT is in good hands and well-positioned for the future. With that, it is my pleasure to be here with you today on my final conference call to present one last update on CAPREIT's performance. Let's begin on slide 4 and walk through some highlights from the year so far. In 2026, we've completed CAD 45 million worth of asset repositioning in Canada. We've also sold CAD 143 million of properties in the Netherlands through April 2026.

Speaker #1: Are effective July 2. I have greatly enjoyed the nearly 30 years I have spent with CAPRI and would like to express my sincere gratitude to everyone, past and present, for their collaboration and partnership.

Speaker #3: We've also sold 143 million of properties in the Netherlands through April 2026. Following that, on May 1st, CAPRI closed on the privatization of European residential REIT, acquiring all publicly held units, not already held by CAPRI, for 99 million dollars.

Speaker #1: Brad brings substantial leadership capability and public company expertise. With 30 years of experience in real estate and capital markets, I am confident that under his leadership, CAPREIT is in good hands and well-positioned for the future.

Speaker #3: On our MCIB, we've repurchased and canceled 42 million dollars of our trust units at a weighted average price of 37 dollars per unit. Which represents a substantial discount to our NAV of approximately 55 dollars per unit, as of March 31st, 2026.

Speaker #1: And with that, it is my pleasure to be here with you today on my final conference call to present one last update on CAPRI's performance.

Speaker #1: Let's begin on slide 4 and walk through some highlights from the year so far. In 2026, we've completed 45 million dollars' worth of asset repositioning in Canada.

Speaker #3: Operationally, despite current pressures impacting the broader multi-residential sector, CAPRI continues to perform well. On our same property residential portfolio in Canada, occupancy was 97.1%, while occupied AMR grew by 2.9%.

Speaker #1: We've also sold 143 million of properties in the Netherlands through April 2026. Following that, on May 1, CAPRI closed on the privatization of European residential REIT, acquiring all publicly held units, not already held by CAPRI, for 99 million dollars.

Mark Kenney: Following that, on 1 May, CAPREIT closed on the privatization of European Residential REIT, acquiring all publicly held units not already held by CAPREIT for CAD 99 million. On our NCIB, we've repurchased and canceled CAD 42 million of our trust units at a weighted average price of CAD 37 per unit, which represents a substantial discount to our NAV of approximately CAD 55 per unit as of 31 March 2026. Operationally, despite current pressures impacting the broader multi-residential sector, CAPREIT continues to perform well. On our same-property residential portfolio in Canada, occupancy was 97.1%, while occupied AMR grew by 2.9%. Combined with the ongoing improvements to cost control and procurement efficiency, our same property NOI margin in Canada expanded to 62.2% for Q1 2026.

Speaker #3: Combined with the ongoing improvements to cost control and procurement efficiency, our same property NOI margin in Canada expanded to 62.2% for Q1 2026. With a decrease in the fair value of our investment properties this quarter to reflect softer market conditions, our total debt to gross book value ratio increased to 40.3%, a level we still consider conservative and on target.

Speaker #1: On our NCIB, we've repurchased and canceled 42 million dollars of our trust units at a weighted average price of 37 dollars per unit. Which represents a substantial discount to our NAV of approximately 55 dollars per unit as of March 31, 2026.

Speaker #1: Operationally, despite current pressures impacting the broader multi-residential sector, CAPRI continues to perform well. On our same property residential portfolio in Canada, occupancy was 97.1% while occupied AMR grew by 2.9%.

Speaker #3: Turning to slide 6, you can see how our portfolio composition has evolved. Today, the majority of our portfolio is concentrated in core assets complemented by a meaningful allocation to recently constructed properties, which help capital requirements and approve operating efficiency.

Speaker #1: Combined with the ongoing improvements to cost control and procurement efficiency, our same property NOI margin in Canada expanded to 62.2% for Q1 2026. With a decrease in the fair value of our investment properties this quarter to reflect softer market conditions, our total debt to gross book value ratio increased to 40.3%, a level we still consider conservative and on target.

Speaker #3: In addition, given the high quality and exceptional locations of these buildings, they offer strong upside potential once supply-demand dynamics normalize. We also maintain flexibility through a smaller allocation of non-core assets, which supports ongoing capital recycling.

Mark Kenney: With a decrease in the fair value of our investment properties this quarter to reflect softer market conditions, our total debt to gross book value ratio increased to 40.3%, a level we still consider conservative and on target. Turning to slide 6, you can see how our portfolio composition has evolved. Today, the majority of our portfolio is concentrated in core assets, complemented by a meaningful allocation to recently constructed properties, which help capital requirements and improve operating efficiency. In addition, given the high quality and exceptional locations of these buildings, they offer strong upside potential once supply-demand dynamics normalize. We also maintain flexibility through a smaller allocation of non-core assets, which supports ongoing capital recycling. This balanced mix enhances the resilience of our platform and drives more stable performance through varying market conditions.

Speaker #3: This balanced mix enhances the resilience of our platform and drives more stable performance through varying market conditions. With that, I'll turn it over to Stephen to walk through our operational and financial results for the quarter.

Speaker #1: Turning to slide 6, you can see how our portfolio composition has evolved. Today, the majority of our portfolio is concentrated in core assets complemented by a meaningful allocation to recently constructed properties, which help capital requirements and approve operating efficiency.

Speaker #4: Thanks, Mark. We'll start with operational performance across our Canadian residential portfolio, as shown on slide 8. Our occupancies have held up well given current market conditions, with 97.1% occupancy as of March 31st, 2026.

Speaker #1: In addition, given the high quality and exceptional locations of these buildings, they offer strong upside potential once supply-demand dynamics normalize. We also maintain flexibility through a smaller allocation of non-core assets, which supports ongoing capital recycling.

Speaker #4: While modestly lower year-over-year, this compares favorably to industry benchmarks. You will also see here that occupied AMR has increased, as Mark mentioned. On the total Canadian residential portfolio, it grew by 3.3% to 1732 as of March 31st, 2026, compared to 1677 on March 31st, 2025.

Speaker #1: This balanced mix enhances the resilience of our platform and drives more stable performance through varying market conditions. With that, I'll turn it over to Stephen to walk through our operational and financial results for the quarter.

Mark Kenney: With that, I'll turn it over to Stephen to walk through our operational and financial results for the quarter.

Speaker #4: This rank growth is supported by renewals and the positive mark-to-market opportunity embedded across much of our portfolio. However, it also reflects turnover that remains weighted toward shorter-term leases, which are trending on average above market.

Speaker #2: Thanks, Mark. We'll start with operational performance across our Canadian residential portfolio as shown on slide 8. Our occupancies have held up well given current market conditions, with 97.1% occupancy as of March 31, 2026.

Stephen Co: Thanks, Mark. We'll start with operational performance across our Canadian residential portfolio, as shown on slide 8. Our occupancies have held up well, given current market conditions with 97.1% occupancy as of 31 March 2026. While modestly lower year over year, this compares favorably to industry benchmarks. You will also see here that occupied AMR has increased, as Mark mentioned. On the total Canadian residential portfolio, it grew by 3.3% to CAD 1,732 as of 31 March 2026, compared to CAD 1,677 on 31 March 2025. This rent growth is supported by renewals and the positive mark-to-market opportunity embedded across much of our portfolio. It also reflects turnover that remains weighted towards shorter-term leases, which are trending on average above market. Let's turn to slide 9 and dive deeper into that dynamic.

Speaker #4: Let's turn to slide 9 and dive deeper into that dynamic. As we've discussed previously, turnover continues to vary by at least 10 years. You can see the breakdown on this slide with approximately 45% of our turnover in the first quarter coming from residents who have been in their units for less than 2 years.

Speaker #2: While modestly lower year-over-year, this compares favorably to industry benchmarks. You will also see here that occupied AMR has increased, as Mark mentioned. On the total Canadian residential portfolio, it grew by 3.3% to 1732 as of March 31, 2026, compared to 1677 on March 31, 2025.

Speaker #4: These leases turn at an average lots of lease of 10.8%, reflecting ongoing pressure from shorter-term leases that are turning over below prior peak rents.

Speaker #2: This rent growth is supported by renewals and the positive mark-to-market opportunity embedded across much of our portfolio. However, it also reflects turnover that remains weighted toward shorter-term leases, which are trending on average above market.

Speaker #4: The remaining 55% of turnover came from all other lease tenures, from 2 through to 10 plus years, where we achieved an average uplift of 5.7%.

Speaker #2: Let's turn to slide 9 and dive deeper into that dynamic. As we've discussed previously, turnover continues to vary by at least 10 years. You can see the breakdown on this slide with approximately 45% of our turnover in the first quarter coming from residents who had been in their units for less than 2 years.

Speaker #4: Together, this resulted in a blended change in monthly rent of negative 2.1% for the quarter. Reflecting the overall impact of current market conditions across the portfolio.

Stephen Co: As we've discussed previously, turnover continues to vary by lease tenure. You can see the breakdown on the slide with approximately 45% of our turnover in Q1 coming from residents who had been in their units for less than 2 years. These leases turn at an average loss to lease of 10.8%, reflecting ongoing pressure from shorter tenure leases that are turning over below prior peak rents. The remaining 55% of turnover came from all other lease tenures from 2 through to 10+ years, where we achieved an average uplift of 5.7%. Together, this resulted in a blended change in monthly rent of -2.1% for the quarter, reflecting the overall impact of current market conditions across the portfolio.

Speaker #4: As of March 31st, 2026, 28% of our leases had a tenure of less than 2 years, with average monthly rent per square foot of approximately $2.60.

Speaker #2: These leases turn at an average loss to lease of 10.8%, reflecting ongoing pressure from shorter-term leases that are turning over below prior peak rents.

Speaker #4: This segment remains subject to higher turnover as market rents have declined. In contrast, longer tenure leases carry lower in-place rents, which continue to support embedded upside across a large portion of the portfolio.

Speaker #2: The remaining 55% of turnover came from all other lease tenures, from 2 through to 10 plus years, where we achieved an average uplift of 5.7%.

Speaker #4: Given current conditions, we expect elevated turnover among the shorter tenure leases to persist in the near term. As higher in-place rents reset to market, at the same time, longer tenure leases should continue to generate positive uplift on turnover even in a softer environment, providing an important level of downside protection until supply-demand conditions return to balance.

Speaker #2: Together, this resulted in a blended change in monthly rent of negative 2.1% for the quarter. Reflecting the overall impact of current market conditions across the portfolio.

Speaker #2: As of March 31, 2026, 28% of our leases had a tenure of less than 2 years, with average monthly rent per square foot of approximately $2.60.

Stephen Co: As of 31 March 2026, 28% of our leases had a tenure of less than 2 years, with average monthly rent per square foot of approximately CAD 2.60. This segment remains subject to higher turnover as market rents have declined. In contrast, longer tenure leases carry lower in-place rents, which continue to support embedded upside across a large portion of the portfolio. Given current conditions, we expect the elevated turnover among the shorter tenure leases to persist in the near term as higher in-place rents reset to market. At the same time, longer tenure leases should continue to generate positive uplift on turnover, even in a softer environment, providing an important level of downside protection until supply-demand conditions return to balance. Referring to slide 10 with the dynamics just described, our same property operating revenues in Canada grew by 1.1%.

Speaker #4: Referring to slide 10, with the dynamics just described, our same property offering revenues in Canada grew by 1.1%. On the expense side, same property OPEX decreased by 0.5%.

Speaker #2: This segment remains subject to higher turnover as market rents have declined. In contrast, longer tenure leases carry lower in-place rents, which continue to support embedded upside across a large portion of the portfolio.

Speaker #4: This reflects lower natural gas expense during the federal following the federal carbon tax removal that came into effect on April 1st, 2025, as well as a 0.5% reduction in other operating expenses driven by our continued focus on cost containment.

Speaker #2: Given current conditions, we expect elevated turnover among the shorter tenure leases to persist in the near term. As higher in-place rents reset to market, at the same time, longer tenure leases should continue to generate positive uplift on turnover even in a softer environment, providing an important level of downside protection until supply-demand conditions return to balance.

Speaker #4: With that, same property Canadian NOI grew by 2%, and our margin expanded to 62.2% for Q1 2026. Diluted FFO per unit was up by 1.7%, driven mainly by a creative impact of trust unit repurchases under our NCIB program, along with growth in the same property NOI, partly offset by loss NOI on dispositions.

Speaker #2: Referring to slide 10 with the dynamics just described, our same property offering revenues in Canada grew by 1.1%. On the expense side, same property OPEX decreased by 0.5%.

Stephen Co: On the expense side, same property OpEx decreased by 0.5%. This reflects lower natural gas expense following the federal carbon tax removal that came into effect on 1 April 2025, as well as a 0.5% reduction in other operating expenses driven by our continued focus on cost containment. With that, same property Canadian NOI grew by 2% and our margin expanded to 62.2% for Q1 2026. Diluted FFO per unit was up by 1.7%, driven mainly by accretive impact of trust unit repurchases under our NCIB program, along with growth in same property NOI, partly offset by lost NOI on dispositions.

Speaker #2: This reflects lower natural gas expense during the federal following the federal carbon tax removal that came into effect on April 1, 2025, as well as a 0.5% reduction in other operating expenses driven by our continued focus on cost containment.

Speaker #4: On slide 11, we've summarized our financial position. With a well-staggered mortgage renewal portfolio that has no more than 13% of Canadian mortgages maturing in any single year, and a low-weighted average mortgage interest rate of 3.3%, we also have $124 million of available liquidity in Canada at period end, providing capacity to continue pursuing a creative opportunity.

Speaker #2: With that, same property Canadian NOI grew by 2%, and our margin expanded to 62.2% for Q1 2026. Diluted FFO per unit was up by 1.7%, driven mainly by the accretive impact of trust unit repurchases under our NCIB program, along with growth in same property NOI, partly offset by lost NOI on dispositions.

Speaker #4: On that note, I will turn the call back over to Mark.

Speaker #5: Thanks, Stephen. Before wrapping up, I want to quickly highlight slide 13, which has some key takeaways from our 2025 ESG report recently released. We've made solid progress across our ESG priorities in 2025.

Speaker #2: On slide 11, we've summarized our financial position. With a well-staggered mortgage renewal portfolio that has no more than 13% of Canadian mortgages maturing in any single year, and a low-weighted average mortgage interest rate of 3.3%, we also have $124 million of available liquidity in Canada at period N, providing capacity to continue pursuing a creative opportunity.

Stephen Co: On slide 11, we summarize our financial position with a well-staggered mortgage renewal portfolio that has no more than 13% of Canadian mortgages maturing in any single year and a low weighted average month mortgage interest rate of 3.3%. We also have CAD 124 million of available liquidity in Canada at period end, providing capacity to continue pursuing accretive opportunities. On that note, I will turn the call back over to Mark.

Speaker #5: With these efforts supporting our ability to deliver long-term value for our investors while also contributing positively to the communities we serve. I'd encourage all stakeholders to review the report for more detail on our achievements and ongoing commitments.

Speaker #5: With that, I'd like to take your questions. Before doing that, I just wanted to take a moment to thank Capri's Board of Trustees, that have been exceptionally helpful through my transition process, and I would also like to thank the incredible team at Capri that's been built over the years.

Speaker #2: On that note, I will turn the call back over to Mark.

Speaker #1: Thanks, Stephen. Before wrapping up, I want to quickly highlight slide 13, which has some key takeaways from our 2025 ESG report recently released. We've made solid progress across our ESG priorities in 2025.

Mark Kenney: Thanks, Stephen. Before wrapping up, I want to quickly highlight slide 13, which has some key takeaways from our 2025 ESG report recently released. We've made solid progress across our ESG priorities in 2025. With these efforts supporting our ability to deliver long-term value for our investors while also contributing positively to the communities we serve. I'd encourage all stakeholders to review the report for more detail on our achievements and ongoing commitments. With that, I'd like to take your questions. Before doing that, I just wanted to take a moment to thank CAPREIT's Board of Trustees that have been exceptionally helpful through my transition process. I would also like to thank the incredible team at CAPREIT that's been built over the years.

Speaker #5: We have a group of really talented, highly exceptional, highly dedicated people that investors should take comfort in the fact that we've got a great team supporting your investment.

Speaker #1: With these efforts supporting our ability to deliver long-term value for our investors, while also contributing positively to the communities we serve. I'd encourage all stakeholders to review the report for more detail on our achievements and ongoing commitments.

Speaker #5: With that, happy to take any questions.

Speaker #3: Thank you. To ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two.

Speaker #3: When preparing to ask a question, please ensure your device is unmuted locally. Our first question comes from Jonathan Kelcher from TD Cowen. Your line is now open.

Speaker #1: With that, I'd like to take your questions. Before doing that, I just wanted to take a moment to thank Capri's Board of Trustees that have been exceptionally helpful through my transition process, and I would also like to thank the incredible team at Capri that's been built over the years.

Speaker #3: Please go ahead.

Speaker #5: Thanks, good morning. And Mark, congrats on a great career at Capri, and all the best in your retirement. Certainly going to be big shoes for Brad to fill.

Speaker #1: We have a group of really talented, highly exceptional, highly dedicated people that investors should take comfort in the fact that we've got a great team supporting your investment.

Mark Kenney: We have a group of really talented, highly exceptional, highly dedicated people that investors should take comfort in the fact that you've got a great team supporting your investment. With that, happy to take any questions.

Speaker #4: Thanks, Jonathan.

Speaker #5: First question, just on the occupancy you guys did manage to stay above 97%, which is pretty good achievement. But how is it trended so far in Q2?

Speaker #1: With that, happy to take any questions.

Speaker #3: Thank you. To ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two.

Operator: Our first question comes from Jonathan Kelcher from TD Cowen. Your line is now open. Please go ahead.

Speaker #4: Well, I can comment on the market in general. More so than specifics on Capri, but what we're hearing is there is cautious optimism that the market is showing up.

Speaker #3: When preparing to ask a question, please ensure your device is unmuted locally. Our first question comes from Jonathan Kilcher from TD Cowen. Your line is now open.

Operator: Our first question comes from Jonathan Kelcher from TD Cowen. Your line is now open. Please go ahead.

Speaker #3: Please go ahead.

Speaker #4: It was very cold winter. There's always that seasonal effect. But we definitely saw the correlation with the lifting of weather as others have reported also.

Speaker #2: Thanks, good morning. And Mark, congrats on a great career at CAPREIT, and all the best in your retirement. Certainly going to be big shoes for Brad to fill.

Jonathan Kelcher: Thanks, good morning. Mark, congrats on a great career at CAPREIT and all the best in your retirement. Certainly gonna be big shoes for Brad to fill.

Speaker #4: And it's the market is there. I wouldn't read too much into that, but definitely we've seen improvements that are expected seasonally.

Speaker #4: Thanks, Jonathan.

Mark Kenney: Thanks, Jonathan.

Jonathan Kelcher: First question, just on the occupancy. You guys did manage to stay above 97%, which is pretty good achievement. How has it trended so far in Q2?

Speaker #2: First question, just on the occupancy—you guys did manage to stay above 97%, which is a pretty good achievement. But how has it trended so far in Q2?

Jonathan Kelcher: First question, just on the occupancy. You guys did manage to stay above 97%, which is pretty good achievement. How has it trended so far in Q2?

Speaker #5: Okay. So kind of cautiously optimistic on the spring leasing season? Is that fair?

Speaker #4: Well, I can comment on the market in general. More so than specifics on Capri, but what we're hearing is there is cautious optimism that the market is showing up.

Mark Kenney: Well, I can comment on the market in general, more so than specifics on CAPREIT. What we're hearing out there is cautious optimism that the market is showing up. It was a very cold winter. There's always that seasonal effect, but we definitely saw the correlation with the lifting of weather, as others have reported also. It's the market is there. I wouldn't read too much into that, but definitely we've seen improvements that are expected seasonally.

Speaker #4: Yes. Yeah. As is reported and things like rentals.ca are a favorite benchmark cautiously optimistic.

Speaker #5: Okay. Fair enough. And then on slide 9, you guys added in the rent per square foot, which is good info and thanks for that.

Speaker #4: It was very cold winter. There's always that seasonal effect. But we definitely saw the correlation with the lifting of weather as others have reported also.

Speaker #5: Where would you say your average market rents are right now? Where do they kind of fit in that slide?

Speaker #4: And it's the market is there. I wouldn't read too much into that, but definitely we've seen improvements that are expected seasonally.

Speaker #4: I mean, if I look at it just on a blended basis, Jonathan, I mean, the mark-to-market, I would say in the plus teens. It would probably be 10 to 15 percent is what I estimate.

Speaker #2: Okay. So kind of cautiously optimistic on the spring leasing season? Is that fair?

Jonathan Kelcher: Okay. Kind of cautiously optimistic on the spring leasing season. Is that fair?

Mark Kenney: Yes. Yeah, like as is reported in things like, you know, Rentals.ca, our favorite benchmark, cautiously optimistic.

Speaker #4: Yes. Yeah. As is reported in things like rentals.ca or Favorite Benchmark, cautiously optimistic.

Speaker #5: Okay. Okay. Let me work with that. And then lastly, just and we've seen this with your peers, but how much of a difference are you seeing in demand at the different price points in your portfolio?

Speaker #2: Okay. Fair enough. And then on slide 9, you added in the rent per square foot, which is good info and thanks for that. Where would you say your average market rents are right now?

Jonathan Kelcher: Okay. Fair enough. Then on slide nine, you added in the rent per square foot, which is good info, and thanks for that. Where would you say your average market rents are right now? Where do they kind of fit in that in that slide?

Speaker #4: There is steady demand for the legacy portfolio. And the demand for newer construction is very dependent on the price per foot. The product that's struggling the most in the market, not necessarily Capri, is the plus $5 a foot, is reported across the country as having a challenge.

Speaker #2: Where do they kind of fit in that slide?

Speaker #4: I mean, if I look at it just on a blended basis, Jonathan, I mean, the mark-to-market, I would say in the plus teens. It would probably be 10 to 15 percent is what I estimate.

Mark Kenney: I mean, if I look at it just on a blended basis, Jonathan, I mean, the mark-to-market, I would say in the plus teens, it would probably be 10% to 15% is what I estimate.

Speaker #2: Okay. Okay. Let me work with that. And then lastly, just and we've seen this with your peers, but how much of a difference are you seeing in demand at the different price points in your portfolio?

Jonathan Kelcher: Okay. Okay. Let me work with that. Then lastly, just, we've seen this with your peers, how much of a difference are you seeing in demand at the different price points in your portfolio?

Speaker #4: But where we've purchased buildings that are well located in that sort of affordable range of less than $3 a foot, there's decent demand.

Speaker #5: Okay. That's helpful. I'll turn it back. Thanks.

Mark Kenney: There is steady demand for the legacy portfolio. The demand for newer construction is very dependent on the price per foot. The product that's struggling the most in the market, not necessarily CAPREIT, is the plus CAD 5 a foot is reported across the country as having a challenge. Where we've purchased buildings that are well located in that sort of affordable range of less than CAD 3 a foot, there is decent demand.

Speaker #4: Thanks, Jonathan.

Speaker #3: Thanks. Thank you. Our next question comes from Jimmy Chen from RBC. Your line is now open. Please go ahead.

Speaker #6: Thanks. Just a follow-up on that slide 9 breakdown. So in that 28% bucket, that's less than two years, would that be skewed to any particular market, or is it representative of your entire portfolio?

Speaker #4: But where we've purchased buildings that are well located in that sort of affordable range of less than $3 a foot, there's decent demand.

Speaker #6: And would you say that bucket is consistent with the turnover angle that we've seen? I.e., 10% potential 10% roll down on the 260 rent?

Speaker #2: Okay, that's helpful. I'll turn it back. Thanks.

Brad Sturges: Okay. That's helpful. I'll turn it back. Thanks.

Jonathan Kelcher: Okay. That's helpful. I'll turn it back. Thanks.

Speaker #4: Yeah. Yeah. I mean, it's really skewed towards you could say more of the newer construction, but it also has some of the legacy assets that really we achieved peak rents that now are turning over.

Speaker #4: Thanks, Jonathan.

Mark Kenney: Thanks, Jonathan.

Speaker #3: Thanks. Thank you. Our next question comes from Jimmy Chen from RBC. Your line is now open. Please go ahead.

Operator: Thanks. Thank you. Our next question comes from Jimmy Shan from RBC. Your line is now open. Please go ahead.

Speaker #4: I would say within that 28%, about 10% is close to market. So you could basically say 18% has a higher propensity for it to turn over.

Jimmy Shan: Thanks. Just to follow up on that slide 9 breakdown. In that 28% bucket, that's less than 2 years, would that be skewed to any particular market or is it representative of your entire portfolio? Would you say that bucket is consistent with the turnover angle that we've seen, i.e., 10%, potential 10% rolled down on the 260 rent?

Speaker #5: Thanks. Just a follow-up on that slide 9 breakdown. So in that 28% bucket, that's less than two years, would that be skewed to any particular market, or is it representative of your entire portfolio?

Speaker #4: Just because those ones are going to be those rents are way above market. So that has a higher propensity to turn over.

Speaker #5: And would you say that bucket is consistent with the turnover angle that we've seen? I.e., 10% potential 10% roll down on the 260 rent?

Speaker #6: I see. Okay. And then on the margin front, obviously, we saw good improvement because of the carbon taxes quarter. How do you think the margin is going to play out for the balance of the year?

Mark Kenney: I mean, Yeah. I mean, it's really skewed towards, you could say more of a newer construction, but it also has, you know, some of the legacy assets that really we've achieved peak rents that now are turning over. I would say, within that 28%, about 10% is close to market. You could basically say 18% has a higher propensity for it to turn over, just because those ones are gonna be, those rents are way above market. That has a higher propensity to turn over.

Stephen Co: I mean, Yeah. I mean, it's really skewed towards, you could say more of a newer construction, but it also has, you know, some of the legacy assets that really we've achieved peak rents that now are turning over. I would say, within that 28%, about 10% is close to market. You could basically say 18% has a higher propensity for it to turn over, just because those ones are gonna be, those rents are way above market. That has a higher propensity to turn over.

Speaker #4: Yeah, yeah. I mean, it's really skewed toward, you could say, more of the newer construction, but it also has some of the legacy assets that really, we achieved peak rents that now are turning over.

Speaker #6: Are you expected to be fairly flat, or are we still going to see some improvement from those cost containment you alluded to?

Speaker #4: Yeah. We're optimistic on cost containment. The work that's being done on cash flow improvements is definitely finding its way into margin improvement. But the team is working extraordinarily hard to find efficiencies, and they're doing so.

Speaker #4: I would say within that 28%, about 10% is close to market. So you could basically say 18% has a higher propensity for it to turn over.

Speaker #4: Just because those ones are going to be those rents are way above market. So that has a higher propensity to turn over.

Speaker #4: And I think that with softening in the Canadian labor market, it's definitely helping on the pricing side. We're not in the high-flying days of COVID.

Speaker #5: I see. Okay. And then, on the margin front, obviously, we saw good improvement because of the carbon taxes this quarter. How do you think the margin is going to play out for the balance of the year?

Jimmy Shan: I see. Okay. On the margin front, obviously we saw a good improvement, because of the carbon taxes quarter. How do you think the margin's gonna play out for the balance of the year? You expect it to be fairly flat, or are we still gonna see some improvement from those cost containment you alluded to?

Speaker #4: When you couldn't find anybody to work, there's good balance returning to the market. So we're feeling quite comfortable on the operating cost front. And very optimistic on cash flow improvements with the new construction portfolio.

Speaker #5: Do you expect it to be fairly flat, or are we still going to see some improvement from those cost containments you alluded to?

Speaker #4: Really, really helping. So it'll all be a matter of, Jimmy, of how rents evolve over the next couple of quarters. But if we can hold our own cost containment is definitely something that we're feeling good about.

Speaker #4: Yeah, we're optimistic on cost containment. The work that's being done on cash flow improvements is definitely finding its way into margin improvement. But the team is working extraordinarily hard to find efficiencies, and they're doing so.

Mark Kenney: Yeah. We're optimistic on cost containment. The work that's being done on capital improvements is definitely finding its way into margin improvement. The team is working extraordinarily hard to find efficiencies, and they're doing so. I think that with softening in the Canadian labor market, it's definitely helping on the pricing side. We're not in the high-flying days of COVID when you couldn't find anybody to work. There's good balance returning to the market. We're feeling quite comfortable on the operating cost front and very optimistic on cash flow improvements with the new construction portfolio really, really helping. It'll all be a matter, Jimmy, of how rents evolve over the next couple of quarters.

Speaker #6: Okay. Just last technical one for me. The current tax do you have any guidance on what that looks like for the year?

Speaker #4: And I think that, with softening in the Canadian labor market, it's definitely helping on the pricing side. We're not in the high-flying days of COVID.

Speaker #4: No, no. I don't have the numbers in front of me, Jimmy. And maybe we'll take this offline.

Speaker #6: Okay. Okay. Perfect. Well, that's it for me. Congrats on the retirement, Mark. We'll definitely miss your candid discussion on this call. All the best.

Speaker #4: Thanks. Thanks, Jimmy.

Speaker #4: Really, really helping. So it'll all be a matter, Jimmy, of how rents evolve over the next couple of quarters. But if we can hold our own cost containment is definitely something that we're feeling good about.

Speaker #3: Thank you. Our next question comes from Brad Sturges from Raymond James. Your line is now open. Please go ahead.

Mark Kenney: If we can hold our own with the, you know, cost containment is definitely something that we're feeling good about.

Speaker #5: Hey. Good morning. Just to go back to our favorite slide 9 here. On the 18% of suites that have a higher propensity to turn, and you said they're above market, how much above market on average would those particular suites be?

Speaker #5: Okay. Just last technical one for me. The current tax do you have any guidance on what that looks like for the year?

Jimmy Shan: Okay. Just last technical one for me. The current tax, do you have any guidance on what that looks like for the year?

Mark Kenney: No, I don't have the numbers in front of me, Jimmy, maybe I'll call. We'll take this offline.

Speaker #4: I mean, generally, if you see what we report on Q1, the less than two years is about 10%. I think that's a fair representation of what that 18% again.

Speaker #4: No, no. I don't have the numbers in front of me, Jimmy. And maybe we'll take this offline.

Mark Kenney: No, I don't have the numbers in front of me, Jimmy, maybe I'll call. We'll take this offline.

Speaker #5: Okay. Okay. Perfect. Well, that's it for me. Congrats on the retirement, Mark. We'll definitely miss your candid discussion on this call. All the best.

Jimmy Shan: Okay.

Mark Kenney: So.

Jimmy Shan: Okay, perfect. Well, that's it for me. Congrats on the retirement, Mark. We'll definitely miss your candid discussion on this call. All the best.

Speaker #5: Okay. Perfect. And given the costly optimistic tone, I guess, for the spring and summer, how do you think about the use of incentives from here through the remainder of the year?

Speaker #4: Thanks. Thanks, Jimmy.

Mark Kenney: Thanks. Thanks, Jimmy.

Operator: Thank you. Our next question comes from Brad Sturges from Raymond James. Your line is now open. Please go ahead.

Speaker #3: Thank you. Our next question comes from Brad Sturgis from Raymond James. Your line is now open. Please go ahead.

Speaker #5: At this point?

Speaker #2: Hey. Good morning. Just to go back to our favorite slide 9 here. On the 18% of suites that have a higher propensity to turn, and you said they're above market, how much above market on average would those particular suites be?

Brad Sturges: Hey, good morning. Just to go back to our favorite slide 9 here. On the 18% of suites that have a higher propensity to turn, and you said they're above market, how much above market on average would those particular suites be?

Speaker #4: Yeah. I think in the case of Capri, the metrics to watch are occupancy first, incentive use second, and mark-to-market rents third with renewals being kind of a tie at the maybe at the end there.

Speaker #4: But stage one for us is always been maximizing occupancy. And we are seeing those seasonal improvements show up. Again, it was pretty cool winter.

Speaker #4: I mean, generally, if you see what we report on Q1, the less than two years is about 10%. I think that's a fair representation of what that 18% again.

Mark Kenney: I mean, generally, if you see what we report on Q1, you know, the less than 2 years is about, you know, 10%. I think that's a fair representation of what that 18%.

Stephen Co: I mean, generally, if you see what we report on Q1, you know, the less than 2 years is about, you know, 10%. I think that's a fair representation of what that 18%.

Speaker #4: So it was nice to see the seasonal change that we'd expected. But the incentive use through Q4 and Q1, as you know, Brad, it gets amortized and does build slightly.

Brad Sturges: Okay.

Mark Kenney: would get.

Stephen Co: would get.

Speaker #2: Okay, perfect. And given the costly optimistic tone, I guess for the spring and summer, how do you think about the use of incentives from here through the remainder of the year?

Brad Sturges: Perfect. Given that the cautiously optimistic tone, I guess, for the spring and summer, how do you think about the use of incentives from here through the remainder of the year at this point?

Speaker #4: And that would be our next line of improvement.

Speaker #2: At this point?

Mark Kenney: Yeah. I think in the case of CAPREIT, the metrics to watch are occupancy first, incentive use second, and mark-to-market rents third, with renewals being kind of a tie at the end there. Stage 1 for us has always been maximizing occupancy, and we are seeing those seasonal improvements show up. Again, it was pretty cold winter, so it was nice to see the seasonal change that we'd expected. The incentive use through Q4 and Q1, as you know, Brad, it gets amortized and does build slightly. That would be our next line of improvement.

Speaker #5: Okay. I appreciate that. Congrats, Mark, on the retirement. All the best.

Speaker #4: Thanks, Brad.

Speaker #3: Thank you. Our next question comes from Kyle Stanley from Desjardins Group. Your line is now open, Kyle. Please go ahead.

Speaker #4: But stage one for us has always been maximizing occupancy. And we are seeing those seasonal improvements show up. Again, it was a pretty cool, cold winter.

Speaker #7: Thanks. Morning, guys. Just want to echo the sentiments. Congrats, Mark, on the great career. And you will be missed. So thank you, Kyle. Just going into the questions.

Speaker #4: So, it was nice to see the seasonal change that we'd expected. But the incentive use through Q4 and Q1, as you know, Brad, it gets amortized and does build slightly.

Speaker #7: Yeah. Just going into the questions. So obviously, we've spent a lot of time on the short-duration leases and the drag that's having on leasing spreads.

Speaker #7: As we're entering the spring here, in your view, has that rolled down kind of peaked? I mean, I think it kind of builds on what Brad just asked, Steven.

Speaker #4: And that would be our next line of improvement.

Speaker #7: But how does that trajectory look?

Speaker #2: Okay. I appreciate that. Congrats, Mark, on the retirement. All the best.

Brad Sturges: Okay. I appreciate that. Congrats, Mark, on the retirement. All the best.

Speaker #4: I mean, I would say it's hard to tell. I mean, we're just getting the April data. And spring leasing season obviously is in effect.

Speaker #4: Thanks, Brad.

Mark Kenney: Thanks, Brad.

Speaker #3: Thank you. Our next question comes from Kyle Stanley from Desjardins Group. Your line is now open, Kyle. Please go ahead.

Operator: Thank you. Our next question comes from Kyle Stanley from Desjardins. Your line is now open, Kyle. Please go ahead.

Speaker #4: But we're also tracking the rents. We're hoping that we have seen a bit of the bottom here. But again, I don't know if that's going to be I don't want to call that.

Speaker #6: Thanks. Morning, guys. Just want to echo the sentiments—congrats, Mark, on a great career. You will be missed. So, thank you, Kyle.

Kyle Stanley: Thanks. Morning, guys. Just wanna echo the sentiments. Congrats, Mark, on the great career, and you will be missed.

Mark Kenney: Thank you, Kyle.

Speaker #2: Just going into the questions. Yeah. Just going into the questions. So obviously, we've spent a lot of time on the short-duration leases and the drag that's having on leasing spreads.

Kyle Stanley: Yeah, just going into the questions. You know, obviously, we've spent a lot of time on the short duration leases and the drag that's having on leasing spreads. As we're entering the spring here, like, in your view, has that rolled down kind of peaked? I mean, I think it kind of builds on what Brad just asked, Stephen, but how does that trajectory look?

Speaker #4: I also think there's potential for it to come down a little bit more. So that part, it's hard for me to tell.

Speaker #2: As we're entering the spring here, in your view, has that roll-down kind of peaked? I mean, I think it kind of builds on what Brad just asked, Steven.

Speaker #7: And just to build on that for Steven's benefit and for clarity, of comments we've made, the cold with Q1 is always the most difficult quarter.

Speaker #2: But how does that trajectory look?

Speaker #7: And I think the weather that seized Canada in Q1 really what we did see is quite a dramatic drop in traffic coming to our offices.

Mark Kenney: Yeah. I mean, I would say it's hard to tell. I mean, we're just getting the April data, and spring leasing season obviously is in effect.

Stephen Co: Yeah. I mean, I would say it's hard to tell. I mean, we're just getting the April data, and spring leasing season obviously is in effect.

Speaker #4: Yeah. I mean, I would say it's hard to tell. I mean, we're just getting the April data. And spring leasing season, obviously, is in effect.

Speaker #7: Despite that, we fought the occupancy battle well. Albeit with some rent deterioration on turnover and some incentive use. And it's been very refreshing to see those seasonal changes show up again.

Speaker #4: But we're tracking the rents. We're hoping that we have seen a bit of the bottom here. But again, I don't know if that's going to be I don't want to call that.

Stephen Co: We're tracking the rents. We're hoping that we have seen a bit of the bottom here, but again, I don't know if that's gonna be I don't wanna call that. I also think there's potential for it to come down a little bit more. That part, and it's hard for me to tell.

Speaker #7: In Q2. And that's the reason for optimism. That's also kind of what's being reported widely in the market. But it's more just the seasonal change.

Speaker #4: I also think there's potential for it to come down a little bit more. So that part, it's hard for me to tell.

Speaker #7: I would not read too much more into it other than it's refreshing to see traffic returning to the offices.

Speaker #6: And just to build on that for Steven's benefit and for clarity, of comments we've made, the cold with Q1 is always the most difficult quarter.

Mark Kenney: Just to build on that for Steven's benefit and for clarity of comments we've made. Q1 is always the most difficult quarter, and I think the weather that seized Canada in Q1, really what we did see is quite a dramatic drop in traffic coming to our offices. Despite that, we fought the occupancy battle well, albeit with some rent deterioration on turnover and some incentive use. It's been very refreshing to see those seasonal changes show up again in Q2, and that's reason for optimism. That's also kind of what's being reported widely in the market, but it's more just the seasonal change. I would not read too much more into it other than it's refreshing to see traffic returning to the offices.

Speaker #5: Right. Okay. Thank you for that. Just again, sticking with the slide, it looks like the trend on at least the proportion of your turnover that's coming from those short tenured leases is going a bit lower at 45% today from maybe 50% over the last couple of quarters.

Speaker #6: And I think the weather that seized Canada in Q1 really what we did see is quite a dramatic drop in traffic coming to our offices.

Speaker #6: Despite that, we fought the occupancy battle well. Albeit with some rent deterioration on turnover and some incentive use. And it's been very refreshing to see those seasonal changes show up again.

Speaker #5: Is that probably a good way to look at it and expect that to obviously continue a bit lower as you turn more of these?

Speaker #5: Is that the view?

Speaker #4: Yeah. I wouldn't use that as extrapolation on what that would look like for the rest of the year. I mean, it could just be seasonal.

Speaker #6: In Q2. And that's the reason for optimism. That's also kind of what's being reported widely in the market. But it's more just the seasonal change.

Speaker #4: So we'll see. But I mean, I wouldn't look into that too closely. But I would say it would be you're still continuing to see 40% plus.

Speaker #6: I would not read too much more into it other than it's refreshing to see traffic returning to the offices.

Speaker #4: In that short-term leases.

Speaker #7: Kyle, you make a very interesting point, though, that we will have to continue to kind of update the market on. With the newer construction portfolio, what remains to be seen, given that those buildings do have higher turnover, is this might be the profile of turnover that we have.

Speaker #2: Right, okay. Thank you for that. Just again, sticking with this slide, it looks like the trend on at least the proportion of your turnover that's coming from those short-tenured leases is going a bit lower, at 45% today from maybe 50% over the last couple of quarters.

Kyle Stanley: Right. Okay. Thank you for that. Just again, sticking with this slide, it looks like the trend on at least the proportion of your turnover that's coming from those short-tenured leases is going a bit lower at 45% today from, you know, maybe 50% over the last couple of quarters. Is that probably a good way to look at it and expect that to obviously continue a bit lower as you turn more of these? Is that the view?

Speaker #2: Is that probably a good way to look at it and expect that to obviously continue a bit lower as you turn more of these?

Speaker #7: It's just the flow-through impact of either COVID leases or a softening market. But this is information we'll continue to provide. Because I do think it's very helpful.

Speaker #2: Is that the view?

Stephen Co: Yeah, I wouldn't use that as extrapolation on what that will look like for the rest of the year. I mean, it could just be seasonal, we'll see. I mean, I wouldn't look into that too closely. I would say you'll still continue to see 40% plus in that short-term leases.

Speaker #4: Yeah. I wouldn't use that as extrapolation on what that would look like for the rest of the year. I mean, it could just be seasonal.

Speaker #7: Obviously, slide 9 is getting a lot of attention today.

Speaker #4: So we'll see. But I mean, I wouldn't look into that too closely. But I would say it would be you'll still continue to see 40% plus.

Speaker #5: Yeah. No. Agreed. It is very valuable. I think in the work we're trying to do. Okay. Last one for me. Higher-level question. If you had to point to some markets where the trends you're seeing today are more positive, maybe, than you would have expected, which markets might those be?

Speaker #4: In that short-term leases.

Speaker #6: Kyle, you make a very interesting point, though, that we will have to continue to kind of update the market on. With the newer construction portfolio, what remains to be seen, given that those buildings do have higher turnover, is this might be the profile of turnover that we have.

Mark Kenney: Kyle, you make.

Kyle Stanley: Okay.

Mark Kenney: You make a very interesting point, though, that we will have to continue to kind of update the market on. With the newer construction portfolio, what remains to be seen, given that those buildings do have higher turnover, is this might be the profile of turnover that we have. It's just the flow-through impact of either COVID leases or a softening market. This is information we'll continue to provide, 'cause I do think it's very helpful. Obviously, slide nine is getting a lot of attention today.

Speaker #4: Yeah. We recently did a visit to Halifax. And it's holding up remarkably well. There are a lot of cranes in the sky. But we're definitely seeing strength in that market.

Speaker #6: It's just the flow-through impact of either COVID leases or a softening market. But this is information we'll continue to provide, because I do think it's very helpful.

Speaker #4: I think what I would be looking at as an investor is just the immigration trends around foreign students, in particular. And that would have a probably a greater impact on cap rate than our peers.

Speaker #6: Obviously, slide 9 is getting a lot of attention today.

Speaker #2: Yeah. No. Agreed. It is very valuable. I think in the work we're trying to do. Okay. Last one for me. Higher-level question. If you had to point to some markets where the trends you're seeing today are more positive, maybe, than you would have expected, which markets might those be?

Kyle Stanley: Yeah. No, agreed. It is very valuable, I think in the, in the work we're trying to do. Okay, last one for me. Just higher level question. If you had to point to some markets where, you know, the trends you're seeing today are more positive maybe than you would have expected, you know, which markets might those be?

Speaker #4: Just given that we're on a Vancouver-Montreal. We're the university's London, Ontario, and Ottawa where we tend to have student populations. So that's something we'll be watching really closely.

Speaker #4: Immigration in general. And the absorption rate of the supply that's here. And blending that as we've talked about with just the starts and do those starts get completed and the outlook for what the deliveries are going to be like.

Speaker #4: Yeah. We recently did a visit to Halifax. And it's holding up remarkably well. There are a lot of cranes in the sky. But we're definitely seeing strength in that market.

Mark Kenney: Yeah. You know, we recently did a visit to Halifax, and it's holding up remarkably well. Like, there are a lot of cranes in the sky, we're definitely seeing strength in that market. I think, what I would be looking at as an investor is just the immigration trends around foreign students in particular, that would have a probably a greater impact on CAPREIT than our peers, just given that we're Toronto, Vancouver, Montreal. We're the universities in London, Ontario, and Ottawa, where we tend to have student populations. That's something we'll be watching really closely. Immigration in general, the absorption rate of the supply that's here. Blending that, as we've talked about, with just the starts and do those starts get completed.

Speaker #4: Because we all know we're very, very low going into the 24-month kind of horizon. So things are it's just putting all these metrics together at the same time.

Speaker #4: It's supply. It's population decline. And it's deliveries. With an attribution to unemployment. And it's not deteriorating in the seasonal Q2 that we may seasonal in Q2.

Speaker #4: Immigration in general. And the absorption rate of the supply that's here. And blending that, as we've talked about, with just the starts and do those starts get completed and the outlook for what the deliveries are going to be like.

Speaker #5: Okay. Appreciate the color. Thanks. I'll turn it back.

Speaker #4: Thanks, Kyle.

Speaker #3: Thank you. Our next question comes from Mario Saric from Scotiabank. Your line is open. Please go ahead.

Mark Kenney: The outlook for what the deliveries are gonna be like, as we all know, are very, very low going into the 24-month kind of horizon. Well, it's just putting all these metrics together at the same time. It's supply, it's population decline, and it's deliveries with an attribution to unemployment. It's not deteriorating in the seasonal Q2 that we may have feared. It's a return to seasonal in Q2.

Speaker #4: Because we all know we're very, very low going into the 24 months kind of horizon. So things are it's just putting all these metrics together at the same time.

Speaker #5: Hi. Good morning. And I'm Mark. Congratulate you on your illustrious career. And wish you well in retirement as well.

Speaker #4: Well, thank you, Mario.

Speaker #4: It's supply, it's population decline, and it's deliveries, with an attribution to unemployment. And it's not deteriorating in the seasonal Q2 that we may have feared.

Speaker #5: Yeah. So just in terms of and I apologize. I joined the call a bit late. So this may have been discussed if it has.

Speaker #5: We can just move on. But the same-store revenue growth came in at just over 1% in Q1. Given what you're seeing thus far, in the spring leasing market, it sounds like you're cautiously optimistic.

Speaker #4: It's a return to seasonal in Q2.

Speaker #5: Do you still think that 26 can land in that 2 to 3 percent growth range? Or could we expect it to be a bit more moderate than that?

Speaker #2: Okay. Appreciate the color. Thanks. I'll turn it back.

Kyle Stanley: Okay. Appreciate the color. Thanks. I'll turn it back.

Speaker #4: Thanks, Kyle.

Stephen Co: Thanks, Kyle.

Mark Kenney: Thanks, Kyle.

Speaker #3: Thank you. Our next question comes from Mario Saric from Scotiabank. Your line is open. Please go ahead.

Operator: Thank you. Our next question comes from Mario Saric from Scotiabank. Your line is open. Please go ahead.

Speaker #4: Mario, I think where we're seeing Q1 be less about 1.5% in terms of revenue growth, I think that's something that is within the range that we expect.

Speaker #5: Hi. Good morning. And I'm Mark. I congratulate you on your illustrious career. And wish you well in retirement as well.

Mario Saric: Hi, good morning. Mark, I congratulate you on your illustrious career and wish you well in retirement as well.

Speaker #4: Well, thank you, Mario.

Mark Kenney: Well, thank you, Mario.

Mario Saric: Yeah. Just in terms of, and I apologize, I joined the call a bit late, so this may have been discussed. If it has, we can just move on. The same-store revenue growth came in at just over 1% in Q1. Given what you are seeing thus far, in the spring leasing market, it sounds like you are cautiously optimistic. Do you still think that 2026 can land in that 2% to 3% growth range, or can we expect it to be a bit more moderate than that?

Speaker #4: And especially for the year. If we track OPEX growth for the remainder of the year, we did pretty well in Q1. And a lot of it has to do with the carbon tax removal.

Speaker #5: Yeah. So just in terms of I apologize. I joined the call a bit late. So this may have been discussed if it has. We can just move on.

Speaker #5: But the same-store revenue growth came in at just over 1% in Q1. Given what you're seeing thus far, in the spring leasing market, it sounds like you're cautiously optimistic.

Speaker #4: But if we factored out the carbon tax on the same property basis, I think it would turn out to be about 2% on an OPEX growth basis.

Speaker #4: So I think Q1, we'll continue to achieve some cost containment initiatives throughout the year. And so if you kind of blend that, 1 to 2 percent revenue growth and maybe 2 to 3 percent OPEX growth, I think that's kind of where we may land.

Speaker #5: Do you still think that 26 can land in that 2 to 3 percent growth range? Or could we expect it to be a bit more moderate than that?

Stephen Co: Mario, I think, where we're seeing Q1 be less about 1.5% in terms of revenue growth. I think that's something that is within the range that we expect especially for the year. If we track OpEx growth for, you know, for the remainder of the year, we did pretty well in Q1. A lot of it has to do with the carbon tax removal. If, you know, if we factored out the carbon tax on the same property basis, I think it would turn out to be about 2% on a OpEx growth basis. You know, I think Q1, we'll continue to achieve some cost containment initiatives throughout the year.

Speaker #4: Mario, I think where we're seeing Q1 be less about 1.5% in terms of revenue growth, I think that's something that is within the range that we expect.

Speaker #7: I think, Mario, just to add, the cap rate portfolio will mature into a more stabilized state this year because of all the capital recycling that's happened, including things like eREZ.

Speaker #4: And especially for the year. If we track OPEX growth for the remainder of the year, we did pretty well in Q1. And a lot of it has to do with the carbon tax removal.

Speaker #7: We'll get to a more stable predictable metric. And definitely the new construction is going to help us on cash flow. It's definitely helping on higher margins.

Speaker #4: But if we factored out the carbon tax on the same property basis, I think it would turn out to be about 2% on an OPEX growth basis.

Speaker #4: So I think in Q1, we'll continue to achieve some cost containment initiatives throughout the year. And so, if you kind of blend that—1% to 2% revenue growth and maybe 2% to 3% OPEX growth—I think that's kind of where we may land.

Speaker #7: Cost containment. And again, the efforts that the team are making around all areas of cost and capex costs are very positive. Very, very positive.

Stephen Co: If you kind of blend that, you know, 1% to 2% revenue growth and maybe 2% to 3% OpEx growth, I think that's kind of where we may land.

Speaker #7: So it'll all be about rents, is what we said earlier in the call. That will determine margin growth. And we got the best team we've ever had to handle this particular situation.

Speaker #6: I think, Mario, just to add, the cap rate portfolio will mature into a more stabilized state this year. Because of all the capital recycling that's happened, including things like eREZ.

Mark Kenney: I think, Mario, just to add, the CAPREIT portfolio will mature into a more stabilized state this year that because of all the capital recycling that's happened, including things like ERES. We'll get to a more stable, predictable metric. Definitely the new construction is gonna help us on cash flow. It's definitely helping on higher margin cost containment. The efforts that the team are making around all areas of OpEx costs and CapEx costs are very positive. It'll all be about rents, is what we said earlier in the call. That will determine, you know, margin growth. We got the best team we've ever had to handle this particular situation.

Speaker #5: Yeah. The best team and best portfolio. What you've had as well. The in terms of the incentives, so Q2 should be a bit more active in terms of actual leasing relative to Q1.

Speaker #6: We'll get to a more stable predictable metric. And definitely the new construction is going to help us on cash flow. It's definitely helping on higher margins.

Speaker #5: With that said, do you think the absolute amount of incentives being offered has peaked in Q1?

Speaker #6: Cost containment. And again, the efforts that the team are making around all areas of cost and capex costs are very positive. Very, very positive.

Speaker #4: I think the data we're seeing, Mario, I think, yeah, I think that's a fair comment. It did peak in Q1. A lot of the incentives were given in Q1.

Speaker #6: So it'll all be about rents. It's what we said earlier in the call. That will determine margin growth. And we got the best team we've ever had to handle this particular situation.

Speaker #4: Which doesn't actually shows up later on. Because when the lease starts. But yes, I think we've seen the peak in Q1.

Speaker #5: Yeah. The best team and best portfolio. That you've had as well. So in terms of the incentives, so Q2 should be a bit more active in terms of actual leasing relative to Q1.

Mario Saric: Yeah. The best team and best portfolio that you've had as well. In terms of the incentives, Q2 should be a bit more active in terms of actual leasing relative to Q1. With that said, do you think the absolute amount of incentives being offered has peaked in Q1?

Speaker #5: Okay. And my last one, just in terms of I know a lot of the heavy lifting on the disposition side has been done. Is there a range outside of the Netherlands?

Speaker #5: With that said, do you think the absolute amount of incentives being offered has peaked in Q1?

Speaker #5: So Canada, specifically. Is there a range that you're targeting for the rest of 26? And it's early 27?

Speaker #4: Well, we have done the heavy lifting. All of our backs are under strain from the heavy lifting. But I look forward to Brad sharing with the market what comes next.

Speaker #4: I think the data we're seeing, Mario, I think, yeah—I think that's a fair comment. It did peak in Q1. A lot of the incentives were given in Q1.

Stephen Co: I think the data we're seeing, Mario, I think, yeah, I think that's a fair comment. It did peak in Q1. A lot of the incentives were given in Q1, which doesn't actually show it up later on, because when the lease starts. Yes, I think we've seen the peak in Q1.

Speaker #4: Which doesn't actually show up later on, because that's when the lease starts. But yes, I think we've seen the peak in Q1.

Speaker #4: And he's been exceptionally complimentary of the strategy. But I would hold on for guidance with Brad. And it's only fair to him. That would be my only comment.

Speaker #5: Okay. And my last one, just in terms of I know a lot of the heavy lifting on the disposition side has been done. Is there a range outside of the Netherlands?

Mario Saric: Okay. My, my last one, just in terms of, I know a lot of the heavy lifting on the disposition side has been done. Is there a range outside of Netherlands, so Canada-specific, is there a range that you're targeting for the rest of 2026 into early 2027?

Speaker #4: Don't read.

Speaker #5: So Canada specific. Is there a range that you're targeting for the rest of 26? And it's early 27?

Speaker #5: Rest up your back. Congratulations again. And.

Speaker #4: Thanks, Mario.

Speaker #3: Thank you. Our next question is from Matt Kornack from Nation Bank Financial. Your line is open. Please go ahead.

Speaker #6: Well, we have done the heavy lifting. All of our backs are under strain from the heavy lifting. But I look forward to Brad. Sharing with the market what comes next.

Mark Kenney: Well, like, we have done the heavy lifting. You know, all of our backs are under strain from the heavy lifting. I look forward to Brad sharing with the market what comes next. He's been exceptionally complimentary of the strategy. I would hold on for guidance with Brad, and it's only fair to him. That would be my only comment. Over to you.

Speaker #8: I'm not sure what that bank is. But again, I don't want to reiterate what my peers have said. I've always appreciated your passion for the business.

Speaker #6: And he's been exceptionally complimentary of the strategy. But I would hold on for guidance with Brad, and it's only fair to him. That would be my only comment.

Speaker #8: And it shows through. So anyway, turning to the operations, on that 1.5% growth in revenues, is that assuming stable occupancy, I guess, to where you were in Q1?

Speaker #6: Don't.

Speaker #8: And if you could give us a sense, maybe, as to where April and May have trended on the occupancy front, given your comment that that's leading indicator, that would be interesting.

Mario Saric: Rest up your back. Congratulations again.

Speaker #5: Rest up your back. Congratulations again. And.

Speaker #6: Thanks, Mario.

Mark Kenney: Thanks, Mario.

Speaker #3: Thank you. Our next question is from Matt Kornick from National Bank Financial. Your line is open. Please go ahead.

Operator: Thank you. Our next question is from Matt Kornack from National Bank Financial. Your line is open. Please go ahead.

Speaker #4: Yeah. So Matt, I mean, yeah, I mean, it is looking at it on a stable occupancy basis. Obviously, we're not providing information around April.

Matt Kornack: I'm not sure what that bank is. Mark, I wanna reiterate what my peers have said. I've always appreciated your passion for the business and it shows through. Anyway.

Speaker #5: I'm not sure what that bank is. But again, I don't want to reiterate what my peers have said. I've always appreciated your passion for the business.

Matt Kornack: I'm not sure what that bank is. Mark, I wanna reiterate what my peers have said. I've always appreciated your passion for the business and it shows through. Anyway.

Speaker #4: But I would say in the general market, we have seen higher foot traffic. And I think there is a more cautious optimism around leasing.

Speaker #5: And it shows through. So anyway, turning to the operations. On that 1.5% growth in revenues, is that assuming stable occupancy I guess to where you were in Q1?

Mark Kenney: Thanks, Matt.

Matt Kornack: Turning to the operations. On that 1.5% growth in revenues, is that assuming stable occupancy, I guess, to where you were in Q1? If you could give us a sense maybe as to where April and May have trended on the occupancy front, given your comment that that's the leading indicator, that would be interesting.

Speaker #4: So you can take that as probably a slight improvement in occupancy. For us, we look primarily at traffic to the offices and then conversion rates.

Speaker #5: And if you could give us a sense maybe as to where April and May have trended on the occupancy front given your comments that that's leading indicator, that would be interesting.

Speaker #4: So it's really what was clear to the whole industry is that Q1 just saw a very slow velocity rate of people visiting offices. To make decisions.

Speaker #4: Yeah, so Matt, I mean—yeah, I mean, it is looking at it on a stable occupancy basis. Obviously, we're not providing information around April.

Stephen Co: Yeah. Matt, I mean, yeah, I mean, it is looking at it on a stable occupancy basis. Obviously we're not providing information around April, but I would say in the general market, we have seen higher foot traffic. I think, you know, there is a more cautious optimism around leasing. You can take that as probably a slight improvement in occupancy.

Speaker #4: And we've seen that seasonal improvement, which allows conversion rates to kind of deal with the occupancy. So again, maybe a bit of concern just with what's going on in the world.

Speaker #4: But I would say in the general market, we have seen higher foot traffic. And I think there is a more cautious optimism around leasing.

Speaker #4: And the spring is where people could be making decisions. But there's definitely an increase in visitors to the sites. For everybody. That's been reported kind of across the industry.

Speaker #4: So you can take that as probably a slight improvement in occupancy.

Speaker #6: For us, we look primarily at traffic to the offices and then conversion rates. So it's really what was clear to the whole industry is that Q1 just saw a very slow velocity rate of people visiting offices.

Mark Kenney: For us, we look primarily at traffic to the offices and then conversion rate. It's really what was clear to the whole industry is that Q1 just saw a very, very slow velocity rate of people visiting offices to make decisions. We've seen that seasonal improvement, which allows conversion rates to kind of deal with the occupancy. Again, maybe a bit of concern just with what's going on in the world and spring is where people are gonna be making decisions, but there's definitely an increase in visitors to the sites for everybody. You know, that's been reported kind of across the industry.

Speaker #5: Yeah. No, it makes sense. Yeah, your peers, I think, all saw a little bit of incremental occupancy improvement into the spring. And obviously, we dealt with a pretty disgusting January and February in terms of the weather.

Speaker #5: So that makes sense. I guess the key thing, I guess, from here, I mean, there's all this nuance in terms of the turnover in the two-year cohort.

Speaker #6: To make decisions. And we've seen that seasonal improvement, which allows conversion rates to kind of deal with the occupancy. So again, maybe a bit of concern just with what's going on in the world.

Speaker #5: But some of those guys have already got a rent discount if they renewed a year ago. But where do you think market rents head, I guess?

Speaker #5: That's what the key driver is going forward at some point.

Speaker #6: And the spring is where people are going to be making decisions. But there's definitely an increase in visitors to the sites. For everybody. That's been reported kind of across the industry.

Speaker #4: Oh, you mean that inflection point? So that's the question on everybody's mind. Yeah. Again, the way I would try to think about it, it's a little bit complicated.

Matt Kornack: Yeah. No, makes sense. Yeah, your peers I think, also a little bit of incremental occupancy improvement into the spring and obviously we dealt with a pretty disgusting January and February in terms of the weather, so that makes sense.

Speaker #5: I think, all saw a little bit of incremental occupancy improvement into the spring. And obviously, we dealt with a pretty disgusting January and February in terms of the weather.

Speaker #4: But I keep saying it, is the way cap rate is organized is, first, it's occupancy. Second, it's incentives. Third, it's mark-to-market rents. With renewals.

Speaker #5: So that makes sense. I guess the key thing I get from here—I mean, there’s all this nuance in terms of the turnover in the two-year cohort.

Mark Kenney: Yeah.

Matt Kornack: I guess on, the key thing I guess from here, I mean, there's all this nuance in terms of the turnover in the 2-year cohort, but some of those guys have already got a rent discount if they renewed a year ago. Where do you think market rents head? I guess that's what the key driver is going forward at some point.

Speaker #4: So the first line of defense for us is always been maximizing occupancy. And that will help with cash flow. And the improvement that I think is most important really to get early glimpses use of incentives and then you'll see mark-to-market rents follow.

Speaker #5: But some of those guys have already got a rent discount that they renewed a year ago. But where do you think market rents head?

Speaker #5: I guess that's what the key driver is going forward at some point.

Speaker #4: So it's a bit of a convoluted answer, Matt. But that's exactly how it works. So we're very much focused on being occupancy maximizers. Always have been.

Speaker #6: Oh, you mean that inflection point? So that's the question on everybody's mind. Yeah. Again, the way I would try to think about it, it's a little bit complicated.

Mark Kenney: Oh, you mean that inflection point?

Matt Kornack: Yeah.

Mark Kenney: That's the question on everybody's mind. Yeah, again, the way I would try to think about it, and it's a little bit complicated, but I keep saying it, is the way CAPREIT is organized is first it's occupancy, second it's incentives, third it's mark-to-market rent with renewals. The first line of defense for us has always been maximizing occupancy, and that will help with cash flow. The improvement that I think is most important really to get early glimpse is use of incentives, and then you'll see mark-to-market rents follow. It's a bit of a convoluted answer, Matt, but that's exactly how it works. We're very much focused on being occupancy maximizers, always have been. I suspect that Brad will follow the same formula. And we're feeling it at the market.

Speaker #4: And I suspect that Brad will follow the same formula. And we're feeling it in the market. But what I keep commenting on is I am quite astonished that given what's happened to population decline and supply deliveries, how resilient the Canadian multifamily market is.

Speaker #6: But I keep saying it: the way cap rate is organized is, first, it's occupancy; second, it's incentives; third, it's mark-to-market rents with renewals.

Speaker #6: So the first line of defense for us has always been maximizing occupancy. And that will help with cash flow. And the improvement that I think is most important really to get early glimpses use of incentives and then you'll see mark-to-market rents follow.

Speaker #4: It just doesn't seem to match the stats. And that's a testimony, I think, to cap rate and our peers in terms of buying well-located multifamily.

Speaker #6: So it's a bit of a convoluted answer, Matt, but that's exactly how it works. So we're very much focused on being occupancy maximizers—always have been.

Speaker #4: And if it's locations right, you can kind of beat the statistics. And we've done a very, I think, a very good job of picking good property and great locations.

Speaker #4: And so we should beat the overall trend with those decisions. So the market is resilient. And the last point that I would make, I think I may have made it on the last call, is that we must remind ourselves of what's happened in other countries where you've seen a bit of a housing price correction.

Speaker #6: And I suspect that Brad will follow the same formula. And we're feeling out the market. But what I keep commenting on is I am quite astonished that, given what's happened to population decline and supply deliveries, how resilient the Canadian multifamily market is.

Mark Kenney: What I keep commenting on is I am quite astonished that given what's happened to population decline and supply deliveries, how resilient the Canadian multifamily market is. It just doesn't seem to match the stats. That's a testimony, I think, to CAPREIT and our peers in terms of buying well-located multifamily. If its location is right, you can kind of beat the statistics. We've done a very, I think, a very good job of picking good property and great locations. We should beat the overall trend with those decisions. The market is resilient.

Speaker #4: And the rental market always gains fuel in that environment. We don't appear to be in that stage quite yet. But that will be the first indicator.

Speaker #6: It just doesn't seem to match the stats. And that's a testimony, I think, to cap rate and our peers in terms of buying well-located multifamily.

Speaker #4: As Canadian home prices come under pressure or come under more uncertainty, we would naturally expect to see the rental market benefit. So that will be that could be an event sooner than anticipated.

Speaker #6: And if it's locations right, you can kind of beat the statistics. And we've done a very, I think, a very good job of picking good property and great locations.

Speaker #6: And so we should beat the overall trend with those decisions. So the market is resilient. And the last point that I would make—I think I may have made it on the last call—is that we must remind ourselves of what’s happened in other countries where you’ve seen a bit of a housing price correction.

Speaker #4: But we're not giving clarity on that event. Nobody's sort of seeing that yet. But we're sort of anticipating what's going to happen. But there's just so many different metrics that we've never faced before.

Mark Kenney: The last point that I would make, I think I may have made it on the last call, is that we must remind ourselves of what's happened in other countries where you've seen a bit of a housing price correction, and the rental market always gains fuel in that environment. We don't appear to be in that stage quite yet, but that would be the first indicator. If Canadian home prices come under pressure or come under more uncertainty, we would naturally expect to see the rental market benefit. That will be, that could be an event sooner than anticipated, but we're not giving clarity on that event. Nobody's sort of seeing that yet, we're sort of anticipating what's gonna happen. There's just so many different metrics that we've never faced before.

Speaker #4: Population decline and supply.

Speaker #5: Yeah. No, that makes sense. And we talked about it last time as well. Some of my associates still live with their parents. And their husband household consolidation.

Speaker #6: And the rental market always gains fuel in that environment. We don't appear to be in that stage quite yet. But that would be the first indicator.

Speaker #5: So I think there's pent-up demand at some point if the labor market improves and just maybe quickly on another point, though, on the student side.

Speaker #6: As Canadian home prices come under pressure or come under more uncertainty, we would naturally expect to see the rental market benefit. So that will be that could be an event sooner.

Speaker #5: When would we anticipate seeing that trend in terms of those guys signing for kind of August leases? Because it looks like on the stats that the government puts out that the student population has been kind of stable at this point.

Speaker #6: Then anticipated. But we're not giving clarity on that event. Nobody's sort of seeing that yet. But we're sort of anticipating what's going to happen.

Speaker #5: It's not declining, so.

Speaker #6: But there's just so many different metrics that we've never faced before. Population decline and supply.

Speaker #4: Yeah. If there's an uptick in policy change there, then that effect you would see in Q3.

Mark Kenney: Population decline and supply.

Speaker #5: Yeah. No, that makes sense. And we talked about it last time as well. Some of my associates still live with their parents. And their husband household consolidation.

Matt Kornack: Yeah. No, that makes sense. We talked about it last time as well. Some of my associates still live with their parents and there has been household consolidation. I think there's pent-up demand at some point if the labor market improves. Just maybe quickly on another point, though, on the student side, when would we anticipate seeing that trend in terms of those guys signing for kind of August leases? Because it looks like on the stats that the government puts out, that the student population has been kind of stable at this point, and it's not declining.

Speaker #5: Okay. Awesome. Well, thanks again. And hope to chat in the future in whatever role you eventually take or in retirement. Take care.

Speaker #5: So I think there's pent-up demand at some point if the labor market improves. And just maybe quickly on another point though on the student side, when would we anticipate seeing that trend in terms of those guys signing for kind of August leases?

Speaker #4: Yeah. Take care.

Speaker #1: Thank you. Our next question comes from Sairam Srinivas from ATB Cormac Capital Markets. Your line is now open. Please go ahead.

Speaker #5: Because it looks like on the stats that the government puts out that the student population has been kind of stable at this point. It's not declining, so.

Speaker #6: Thank you, everyone. Good morning, guys. Mark, congratulations on a great start here. And all the best for the journey ahead.

Speaker #6: Yeah. If there's an uptick in policy change there, then that effect you would see in Q3.

Mark Kenney: Yeah. If there's an uptick in policy change there, that effect you would see in Q3.

Speaker #4: Thank you.

Speaker #6: I just had a question on slide 6, I guess. So I'm stepping away from 9 now. Let me have a strategic portfolio repositioning. I know about 19% of these assets are newly constructed.

Speaker #5: Okay, awesome. Well, thanks again, and I hope to chat in the future in whatever role you eventually take, or in retirement. Take care.

Matt Kornack: Okay. Awesome. Well, thanks again, and hope to chat in the future in whatever role.

Speaker #6: Would you guys track internally as to what the margins from these would be versus the overall portfolio?

Mark Kenney: Thanks, Matt.

Matt Kornack: eventually take or in retirement. Take care.

Speaker #4: Well, the margins for the new constructed I don't know if we've given there's obviously higher because A, rents are higher, and secondly, pass-through utilities are there.

Mark Kenney: Yeah. Take care.

Speaker #6: Yeah. Take care.

Speaker #1: Thank you. Our next question comes from Sai Ram Srinivas from ATB Cormac Capital Markets. Your line is now open. Please go ahead.

Operator: Thank you. Our next question comes from Sairam Srinivas from ATB Capital Markets. Your line is now open. Please go ahead.

Speaker #4: So they're just naturally higher margins for those two reasons. And that will continue to kind of help mitigate any sort of utility cost increases and the like.

Speaker #7: Thank you, everyone. Good morning, guys. Mark, congratulations on a great start here. And all the best for the journey ahead.

Sairam Srinivas: Thank you, Marissa. Good morning, guys. Mark, congratulations on a great quarter.

Mark Kenney: Hi

Sairam Srinivas: All the best for the journey ahead.

Speaker #6: Thank you.

Mark Kenney: Thank you.

Sairam Srinivas: I just had a question on slide 6, I guess. I'm stepping away from 9 now. Considering the strategic portfolio repositioning, I know about 19% of these assets are newly constructed. Would you guys track internally as to what the margins from these would be versus the overall portfolio?

Speaker #7: I just had a question on slide 6, I guess. So I'm stepping away from 9 now. Let me have a 30-week portfolio repositioning. I know about 19% of these assets are newly constructed.

Speaker #4: So that's what we like about those assets is they're more inflation-protected. And our strategy has been around buying in that upper middle part of the market, less than 350 a foot.

Speaker #7: Would you guys track internally as to what the margins from these would be versus the overall portfolio?

Speaker #4: And we consider that to be the mass market. And we've been able to buy some great properties and great locations that will be resilient as we just talked about that'll support higher margins.

Mark Kenney: Well, the margins for the new constructed, I don't know if we've given. They're obviously higher because A, rents are higher, and secondly, pass-through utilities are there. They're just naturally higher margins for those two reasons. That will continue to kind of help mitigate any sort of utility cost increases and the like. That's what we like about those assets, is they're more inflation protected. Our strategy has been around buying in that upper middle part of the market, less than 350 a foot. We consider that to be the mass market. We've been able to buy some great properties in great locations that will be resilient, as we just talked about. It'll support higher margins. Obviously, you know, plays heavily into the CAPREIT cash flow story.

Speaker #6: Well, the margins for the new constructed I don't know if we've given there's obviously higher because A, rents are higher, and secondly, past your utilities are there.

Speaker #4: And obviously, plays heavily into the cap rate cash flow story.

Speaker #6: That makes sense, Mark. And maybe just going back to your comment on how healthy the private market seems and there's an appetite for apartments there.

Speaker #6: So they're just naturally higher margins for those two reasons. And that will continue to kind of help mitigate any sort of utility cost increases and the like.

Speaker #6: Considering how soft public markets have been, are you actually seeing more volumes in the private side and more participants coming into actually now buy apartments?

Speaker #6: So, that's what we like about those assets—they're more inflation-protected. And our strategy has been around buying in that upper middle part of the market, less than $350 a foot.

Speaker #4: Yeah. The noteworthy trend that we're hearing from brokerage and we've had inbound is a very, very large appetite for what we would call our core portfolio.

Speaker #6: And we consider that to be the mass market. And we've been able to buy some great properties in great locations that will be resilient, as we just talked about, that will support higher margins.

Speaker #4: Legacy assets definitely apartments that would fall in that, call it, affordable range. Air quotes. That's where the capital seems to be orienting itself. We are actively in the market and actively losing bids on assets which is a good sign in terms of holding up value.

Speaker #6: And obviously, it plays heavily into the cap rate cash flow story.

Sairam Srinivas: That makes sense, Mark. Maybe just going back to your comment on, you know, how healthy the private market seems and there's an appetite for apartments there. You know, considering how soft public markets have been, are you actually seeing more volumes on the private side and more participants coming in to actually now buy apartments?

Speaker #7: That makes sense, Mark. And maybe just going back to your comment on how healthy the private market seems and there's an appetite for apartments there.

Speaker #7: Considering how soft public markets have been, are you actually seeing more volumes on the private side, and more participants coming in to actually now buy apartments?

Speaker #4: So the print on some of the trades that have happened that have come out recently would have been trades that would have been executed or negotiated six to eight months ago.

Speaker #6: Yeah. The noteworthy trend that we're hearing from brokerage and we've had inbound is a very, very large appetite for what we would call our core portfolio.

Mark Kenney: Yeah. Like the trend, the noteworthy trend, that we're hearing from brokerage, and we've had inbound, is a very, very large appetite for what we would call our core portfolio, legacy assets, definitely apartments that would fall in that, call it, affordable range, air quotes. That's where the capital seems to be orienting itself. We are actively in the market and actively losing bids on assets, which is a good sign in terms of holding up value. The print on some of the trades that have happened, that have come out recently would have been trades that would have been executed or negotiated 6 to 8 months ago.

Speaker #4: And the valuation in terms of what we're seeing in the competitive market on assets that we're bidding on is very, very competitive. So there seems to be this ongoing disconnect between the private market and public markets.

Speaker #6: Legacy assets are definitely apartments that would fall in that, call it, 'affordable' range—air quotes. That's where the capital seems to be orienting itself. We are actively in the market and actively losing bids on assets.

Speaker #4: But the valuation that the asset level are alive and well.

Speaker #6: That's it, Mark. Thank you so much. All the best for the future. I'll turn it back.

Speaker #4: Thank you. Thanks so much.

Speaker #1: Thank you. Our next question comes from Dane Wilkinson from CIBC. Your line is open. Please go ahead.

Speaker #6: Which is a good sign in terms of holding up value. So the print on some of the trades that have happened, that have come out recently, would have been trades that would have been executed or negotiated six to eight months ago.

Speaker #7: Thank you. Hi, guys. Mark, your tender your honesty and your knowledge are going to be sorely missed. Maybe I could just get personal for a minute.

Speaker #6: And the valuation in terms of what we're seeing in the competitive market on assets that we're bidding on is very, very competitive. So there seems to be this ongoing disconnect between the private market and public markets.

Mark Kenney: The valuation in terms of what we're seeing in the competitive market on assets that we're bidding on is very, very competitive. There seems to be this ongoing disconnect between the private market and public markets, but the valuations at the asset level are alive and well.

Speaker #7: You look back over the past 30 years of your career, you've seen a lot. What's kind of the biggest thing you can say has changed over that time?

Speaker #7: And what advice would you give to the generation that's going to follow you?

Speaker #6: But the valuations that the asset level are alive and well.

Speaker #4: Well, Dane, thank you for those very kind words. And it's always I get excited when you come on the line. The institutional sort of nature of apartment ownership is the biggest change.

Sairam Srinivas: That's it, Parimal. Thank you so much. All the best for the future. I'll turn back.

Speaker #7: That's it, Mark. Thank you so much. All the best for the future. I'll turn it back.

Speaker #6: Thank you. Thanks so much.

Mark Kenney: Thank you. Thanks so much.

Speaker #1: Thank you. Our next question comes from Dean Wilkinson from CIBC. Your line is open. Please go ahead.

Operator: Thank you. Our next question comes from Dean Wilkinson from CIBC. Your line is open. Please go ahead.

Speaker #4: It was a mom-and-pop business. It was what they would call the dirty cousin of real estate in apartments. People didn't really want to get involved because the management was intense and dealt with people face-to-face.

Speaker #8: Thank you. Hi, guys. Mark, your tender your honesty and your knowledge are going to be sorely missed. Maybe I could just get personal for a minute.

Dean Wilkinson: Thank you. Hi, guys.

Mark Kenney: Hi.

Dean Wilkinson: your candor, your honesty, and your knowledge are going to be sorely missed. Maybe I could just get personal for a minute. You look back over the past 30 years of your career, you've seen a lot. What's the biggest thing you can say has changed over that time, and what advice would you give to the generation that's gonna follow you?

Speaker #4: It takes a certain kind of person to be in multifamily. So that was the opportunity. So the advice that I would give anybody out there, seeking a career in real estate, is apartments offer an incredible opportunity for somebody that really wants to get involved in business, that is an ever-evolving, ever-institutionalizing part of real estate, and they're highly sought-after skills.

Speaker #8: You look back over the past 30 years of your career, you've seen a lot. What's kind of the biggest thing you can say has changed over that time?

Speaker #8: And what advice would you give to the generation that's going to follow you?

Speaker #6: Well, Dean, thank you for those very kind words. And it's always I get excited when you come on the line. The institutional sort of nature of apartment ownership is the biggest change.

Mark Kenney: Well, Dean, thank you for those very kind words. As always, I get excited when you come on the line. The institutional sort of nature of apartment ownership is the biggest change. It was a mom-and-pop business. It was, you know, what they would call the dirty cousin of real estate in apartments. People didn't really wanna get involved because the management was intense and, you know, dealt with people face-to-face. It takes a certain kind of person to be in multifamily. So that was the opportunity. Like, the advice that I would give anybody out there like seeking a career in real estate is apartments offer an incredible opportunity for somebody that really wants to get involved in business that is an ever-evolving, ever-institutionalizing part of real estate. They're highly sought-after skills.

Speaker #4: And it's the old-school thing. If you have work ethic and common sense, you can go a lot of ways in multifamily. And that would be my advice.

Speaker #6: It was a mom-and-pop business. It was what they would call the dirty cousin of real estate in apartments. People didn't really want to get involved because the management was intense and dealt with people face-to-face.

Speaker #4: And I found it an incredibly rewarding career. Because of how many people that I've encountered that are sort of stumbled into the sector and have just had incredible careers and there's lots of examples of that at Capri.

Speaker #6: It takes a certain kind of person to be in multifamily. So that was the opportunity. So the advice that I would give anybody out there, seeking a career in real estate, is apartments offer an incredible opportunity for somebody that really wants to get involved in business, that is an ever-evolving, ever-institutionalizing part of real estate, and they're highly sought-after skills.

Speaker #4: So yeah, that would be my advice. It's a sector that's institutionalizing. Demand is extremely high for skills. If you've got work ethic, if you've got some financial acumen, and if you've got discipline, you'll have a wonderful career.

Speaker #7: Thank you for that. I can say that I am smarter for having known you. I look forward to seeing you in your retirement. Thanks for everything, Mark.

Speaker #6: And it's the old-school thing. If you have work ethic and common sense, you can go a lot of ways in multifamily. And that would be my advice.

Mark Kenney: You know, it's the old, it's the old school thing. If you have work ethic and common sense, you can go a lot of ways in multifamily, and that would be my advice. I found it an incredibly rewarding career because of how many people that I've encountered that have sort of stumbled into this sector and have just had incredible careers. There's lots of examples of that at CAPREIT. Yeah, that would be my advice. It's a sector that's institutionalizing. Demand is extremely high for skills. If you've got work ethic, if you've got some financial acumen, and if you've got discipline, you'll have a wonderful career.

Speaker #4: Thanks, buddy.

Speaker #1: Thank you. We currently have no further questions. And I would like to hand back to Mark Kenny for any closing remarks.

Speaker #6: And I found it an incredibly rewarding career. Because of how many people that I've encountered that are sort of stumbled into this sector and have just had incredible careers.

Speaker #4: Well, that was a very nice way to end. I'd like to thank everybody for your time today. It's truly been my pleasure to be a part of this great company.

Speaker #6: And there's lots of examples of that at Capri. So yeah, that would be my advice. It's a sector that's institutionalizing. Demand is extremely high for skills.

Speaker #6: If you’ve got work ethic, if you’ve got some financial acumen, and if you’ve got discipline, you’ll have a wonderful career.

Speaker #4: And I'm excited to see what will come for Capri in the future in the years to come. And I will be there on the sidelines to help if you need me.

Speaker #8: Thank you for that. I can say that I am smarter for having known you. I look forward to seeing you in your retirement. Thanks for everything, Mark.

Dean Wilkinson: Thank you for that. I can say that I am smarter for having known you. I look forward to seeing you in your retirement. Thanks for everything, Mark.

Speaker #4: Thank you very much. And goodbye.

Speaker #6: Thanks, buddy.

Mark Kenney: Thanks, buddy.

Speaker #1: Thank you. We currently have no further questions. And I would like to hand back to Mark Kenney for any closing remarks.

Operator: Thank you. We currently have no further questions, and I would like to hand back to Mark Kenney for any closing remarks.

Speaker #6: Well, that was a very nice way to end. I'd like to thank everybody for your time today. It's truly been my pleasure to be a part of this great company.

Mark Kenney: Well, that was a very nice way to end. I'd like to thank everybody for your time today. It's truly been my pleasure to be a part of this great company. I'm excited to see what will come for CAPREIT in the future, in the years to come, and I will be there on the sidelines to help if you need me. Thank you very much, and goodbye.

Speaker #6: And I'm excited to see what will come for CAPREIT in the future, in the years to come. And I will be there on the sidelines to help if you need me.

Speaker #6: Thank you very much, and goodbye.

Operator: Thank you. This now concludes today's call. Thank you all for joining. You may now disconnect your lines.

More CAR.UN earnings call transcripts

Browse all earnings call transcripts

Q1 2026 Canadian Apartment Properties Real Estate Investment Trust Earnings Call

Request TrialDemo

Event Details

Canadian Apartment Properties

CAR_u.TO

Earnings

Q1 2026 Canadian Apartment Properties Real Estate Investment Trust Earnings Call

Friday, May 8th, 2026 at 1:00 PM

Open Event Documents

Search Transcript

Enter a search term to find quotes

Canadian Apartment Properties

Earnings